Angel investing is high risk. Please read this.

This is a summary of the main risks of investing in early-stage companies, not a complete list. Each opportunity we circulate carries its own specific risks, and we set those out alongside the deal. Nothing on this site is investment advice or a personal recommendation. If you are unsure whether early-stage investing is right for you, speak to an independent financial adviser.

You may lose all your money

Most start-ups fail. If a company you back fails, or simply does not grow as hoped, you may lose part or all of what you invested. Neither Hermesa nor anyone else will reimburse you. Only invest money you can afford to lose.

Your money will be tied up

Shares in private companies usually cannot be sold when you want to sell them — there is rarely a buyer and no public market. Expect to hold an investment until the company is sold or floats. That typically takes five to ten years, and may never happen.

Do not expect income along the way

Companies at this stage almost never pay dividends. Any profit goes back into growing the business. A return, if it comes at all, comes at exit.

Your shareholding will likely be diluted

When a company issues new shares — to later investors, or to employees as options — your percentage of the company falls, and so do the rights that go with it. Sometimes you can protect your position by investing again in a later round. If you do not, your stake shrinks.

Tax relief is not guaranteed

Most of our deals are SEIS or EIS eligible, but eligibility can be lost, and the relief you actually receive depends on your own circumstances. Never invest on the assumption that relief is certain.

Diversification is how angels manage risk

Spreading your money across a number of companies, rather than concentrating it in one, is the most important thing you can do to manage risk. It does not remove risk. Our expert-led diligence is designed to help you weigh a deal properly — it cannot make an early-stage investment safe.

You invest at your own risk

Every investment decision is yours alone. Hermesa does not advise members on whether to invest, and does not accept responsibility for the outcome of any investment you choose to make.

You may lose all your money

Your money will be tied up

Do not expect income along the way

Companies at this stage almost never pay dividends. Any profit goes back into growing the business. A return, if it comes at all, comes at exit.

Your shareholding will likely be diluted

Tax relief is not guaranteed

Most of our deals are SEIS or EIS eligible, but eligibility can be lost, and the relief you actually receive depends on your own circumstances. Never invest on the assumption that relief is certain.

Diversification is how angels manage risk

You invest at your own risk

Every investment decision is yours alone. Hermesa does not advise members on whether to invest, and does not accept responsibility for the outcome of any investment you choose to make.

You invest at your own risk

Every investment decision is yours alone. Hermesa does not advise members on whether to invest, and does not accept responsibility for the outcome of any investment you choose to make.